“The market is good for anyone. Better for healthcare. Best for diagnostics,” Velumani said.

VCCircle first reported the company’s plan to file IPO papers last week.

The proposed issue size is Rs 400 crore and the shares will be sold through the offer-for-sale route, he added.

Velumani will sell 1 per cent of his stake while investor CX Partners will offload 19 per cent of its 21 per cent stake. Other investors Norwest Venture Partners, Emerging India Fund and Samara Capital will stay put with their holding.

JM Financial, Edelweiss and ICICI Securities are the investment bankers for the issue.

The DRHP filing comes just days after diagnostics chain Dr Lal PathLabs made a spectacular stock market debut with its shares closing 50 per cent higher from the issue price of Rs 550.

With Thyrocare in the queue, market leader SRL may also relook at its pending IPO.

India’s IPO market rebounded strongly this year and a string of healthcare firms have floated or filed for public issues.

Drugmaker Alkem Laboratories also listed its shares simultaneously with Dr Lal PathLabs in another strong listing.

In August, shares of Biocon Ltd’s contract research and manufacturing subsidiary, Syngene International Ltd, were listed at a premium of 18 per cent to their issue price of Rs 250. The company’s shares have risen over 30 per cent since the listing.